I haven't made any progress with this error and importing directly to godaddy, but perhaps this solution is adequate for other's needs also. Instead of importing directly into the godaddy, use the database publishing wizard to create a script of your database.
Then split the script file into < 2.5 MB files, open the files in godaddy's query analyzer and then execute the scripts. If your database isn't huge that should work okay. Why they would impose a 2.5 MB size limitation is beyond me, but they seem a little
ass backwards at times over there. Let me know if you have any questions or if you come across a better solution.

1. Generate a script with the schema only from my local database
2. Copy and paste script into query analyzer of the SQL manager (to duplicate the database without data)
3. Backed up the database and downloaded the backup.
4. Restored the backup in a new database on my local machine
5. Imported data into new backed up database
6. Backed the new database to the original backup file
7. Uploaded the new backup file (with the same name) back to the server
8. Restored the database

It failed on step 8 because of some security settings put it place to only allow restoring backups created by that particular machine. If anyone knows of a way to hack the files to fool the server, that would be very beneficial. That's the last thing I've tried.
Now I am just trying to rally support to get everyone that is having problems to contact technical support (support@secureserver.net) so they acknowledge there is a problem on their end.